Cooling Inflation Sparks Cuts

Unveiling the Market's Secrets from Behind the Scenes

Author

Nuvo Capital
September 05, 2024

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“The end of the Fed’s inflation fight is coming into view. The further cooling of inflation could give the Fed leeway to be more aggressive with rate declines at coming meetings.”

-Ben Ayers, AVP, Senior Economist at Nationwide Insurance

Recent Multifamily Sales (Click to view details)

Recent Multifamily Loans (Click to view details)

Question:

What are the implications of rent control regulations on multifamily investments?

Answer:

Rent control regulations can impact multifamily investments by limiting the ability to increase rents to market rates, thereby potentially reducing rental income growth and overall profitability. Investors may face challenges in achieving desired returns or maintaining property values in markets with stringent rent control laws. Understanding local regulations and their potential impact on cash flow and property value appreciation is crucial for making informed investment decisions in rent-controlled areas.

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Adam Posen on the Dangers of Jerome Powell's 'Rifle Shot' Jackson Hole Speech

Last week at Jackson Hole, Federal Reserve Chair Jerome Powell delivered a short and powerful speech indicating that it's time for a policy pivot. The goal now, from his perspective, is to prevent further deterioration of the US labor market. His speech didn't delve much into theory or nuance. In this episode, we speak with Peterson Institute President, Adam Posen, who found the speech unsatisfying. He argues that the state of the labor market, while cooling, didn't merit a "rifle shot" approach, such as the one Powell delivered. He explains his concerns and how he sees the risks materializing from here.

Quiz of The Week

What does "Net Operating Income" (NOI) measure in real estate?

a. The income after deducting operating expenses but before taxes

b. The new ownership investment return

c. The national ownership indicator

sǝxɐʇ ǝɹoɟǝq ʇnq sǝsuǝdxǝ ɓuᴉʇɐɹǝdo ɓuᴉʇɔnpǝp ɹǝʇɟɐ ǝɯoɔuᴉ ǝɥꓕ ·ɐ

Random Tip of the Week

👀 Prioritize Responsive Property Management - Maintain a responsive property management team to address tenant inquiries, maintenance requests, and concerns promptly, fostering tenant satisfaction and retention.

Current Rates (Weekly Update)

10-Year Treasury - 3.83% (0%)

Fed Funds Rate - 5.33% (0%)

1-Month Term SOFR - 5.19% (⬇️.06%)

About Nuvo Capital Partners

Nuvo Capital Partners is a niche market-focused multifamily investment platform operating throughout the Southeastern United States. As a dedicated sponsor (General Partner), we specialize in institutional quality real estate investments within these regions. Our team comprises industry professionals with 25+ years of combined experience, ensuring expertise and market knowledge. We pride ourselves on offering a transparent investment process, providing our investors with access to high-quality real estate opportunities while upholding integrity throughout.

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